E-business operations shift: from supply chain management to sense-and-response systems

The design of e-business operations is often relegated to the implementation stage of the Internet commerce development process. The objective of this paper is to present a new framework to facilitate continuous electronic communication among trading partners in the supply chain and the seamless integration of electronic operations throughout the e-business development process. As background, the paper reviews e-business design methodology and related supply chain issues. Then, it articulates a demand-driven, sense-and-response system (SRS) framework for guiding e-business operations and monitoring products across value chain networks without hindering human autonomy. The paper presents a model for the SRS integration of business-process enabling strategies, technologies and systems, such as Enterprise Resource Planning, Customer Relationship Management, Supply Chain Management, Collaborative Planning, Forecasting, and Replenishment, Point of Sale, Radio Frequency Identification Tags, and Global Positioning System. These systems can be instrumental in the ultimate SRS framework realization. The paper also examines ways in which SRS framework implementation may prevent the bullwhip effect by quickly anticipating demand and reducing response time.